In India, the GST threshold exemption limit for businesses determines the minimum turnover a business can have to qualify for exemption from mandatory GST registration and compliance requirements. The threshold limit varies based on the type of business and the nature of the supply. Here are the key exemption limits under Goods and Services Tax (GST): 1. For Goods Suppliers: Rs. 40 Lakhs: A business that supplies only goods and has an annual turnover of up to Rs. 40 lakhs is exempt from GST registration. This limit applies to businesses operating in most states. Rs. 20 Lakhs: For businesses in special category states (like Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and others), the threshold limit is Rs. 20 lakhs. 2. For Service Providers: Rs. 20 Lakhs: A business providing only services with an annual turnover of up to Rs. 20 lakhs is exempt from GST registration. This applies to businesses in general. Rs. 10 Lakhs: In special category states, the threshold limit for service providers is Rs. 10 lakhs. 3. For Special Category States: The special category states include Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and the northeastern states like Assam, Arunachal Pradesh, etc. These states have lower thresholds for both goods and services, which are as follows: Rs. 20 Lakhs for goods suppliers. Rs. 10 Lakhs for service providers. 4. For E-commerce Sellers: E-commerce operators and sellers must compulsorily register under GST if they supply goods or services through an online platform, irrespective of their turnover. 5. For Exempted and Nil Rated Goods/Services: Businesses dealing in goods or services that are exempt or nil-rated under GST may still need to register if their turnover exceeds the threshold limit, even though they are not required to charge GST. Key Points: Businesses whose turnover is below the threshold limit are not required to register under GST but may choose to do so voluntarily for availing input tax credit (ITC). Once the turnover exceeds the specified limit, the business must compulsorily register under GST, and they must charge GST on their supplies. The threshold limits are reviewed periodically, and changes may occur based on government policies. This exemption provides relief to smaller businesses, reducing their administrative and compliance burden under GST.

Dear Client, Under Goods and Services Tax, exemption thresholds are variable in India. These vary with the type of business and place. Here is the position for October 1, 2023 and onwards, which it had been amended: Threshold Limits for GST Registration: 1. For Business Operating in Goods: • General Category States: The cut-off limit is Rs. 40 lakhs. This is applicable to all the states in India. • Special Category States: The limit for this threshold is set at Rs. 20 lakhs.Special category states include regions like Jammu and Kashmir, Uttarakhand, Himachal Pradesh and the North-Eastern states. 2. For Service Providers: • Normal Category States: Threshold Limit is Rs. 20 Lakhs. • Special Category States: The limit is Rs. 10 lakhs. Key Points to Watch • Aggregate Turnover: The threshold limits are applied based on aggregate turnover that involves all taxable supplies, exempt supplies, exports and inter-state supplies except inward supplies of reverse charge. • Compulsory Registration: Many businesses are compulsorily required to register their name in the GST database. This also includes e-commerce operators whose turnovers are either below the threshold or over. • Relief under Threshold: The threshold of exemption limits has been fixed such that small businesses remain exempted from the burden of compliance of GST registration till such prescribed turn over is reached. Understanding these thresholds is critical so that one does not fall a victim to the pitfalls of non-registration under GST. Hope this answer helps you.